If You Liked Fannie and Freddie...

... You'll love Chris Dodd's latest reform proposal. It would make many more companies too big to fail and lead to far greater financial consolidation.

By
Peter J. Wallison

Updated March 17, 2010 10:14 pm ET

Think ObamaCare for the financial system. That's one way to understand Sen. Chris Dodd's bill to reform financial regulation. If passed in its current form, the bill would give the government control over the financial system in roughly the same way, and to the same extent, that ObamaCare would take over the nation's health care. There isn't a public option, exactly, but the private firms involved would be so heavily regulated that they would be effectively controlled by the government.